Coinbase Introduces USDC Bootstrap Fund To Support DeFi Projects; Investing $2M In Compound & dYdX

Coinbase has introduced a new initiative dubbed USDC Bootstrap Fund and just as the name suggests, the firm intends to boost developers with a fund in terms of USDC tokens.

In a blog post, the crypto exchange said that the new fund will be used to enhance developments of decentralized finance (DeFi) protocols. The new initiative ‘USDC Bootstrap’ will only invest in DeFi based projects using its stablecoin USDC.

DeFi is a relatively fresh concept in the blockchain sphere which can be described as the conventional financial products that you could get from a financial institution like lending or derivatives that have been developed on top of a blockchain. In other words, DeFi protocols consist of smart contracts that are governed by codes and the protocol on which they’re built on.

CoinDesk reports that after several deliberations with DeFi platform developers, the exchange says it realized that liquidity or availability of funds to borrow was one of the urgent needs for DeFi based initiatives. The exchange hopes that through grants, it will boost the development of the DeFi ecosystem.

To kickstart the initiative, Coinbase announced that it was investing 1 million USDC each in Compound as well as dYdX. However, unlike the Coinbase Ventures where investments are made in startups for an equity stake, the Bootstrap fund is designed to add to a protocol’s lending pool where interest will be returned after counterparties borrow from it.

Zhuoxun Yin, dYdX operations head, the most challenging aspect in the development of a new DeFi protocol is attracting borrowing demand. however, the addition of USDC to the lending pools will help to lower the interest rates and embolden clients to borrow more USDC.

Head of Bootstrap Fund Nemil Dalal explained that boosting lending protocols will help in the growth and development of DeFi, which is an area of much interest for Coinbase. In the recent past, Coinbase venture also invested in different DeFi protocols such as Dharma and BlockFi. Dalal explained that Coinbase was interested in enhancing decentralized finance within the banking industry.

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Author: Joseph Kibe

Launch of New Node Monitoring Tool lndmon Announced by Lightning Network Dev

Launch-of-New-Node-Monitoring-Tool-lndmon-Announced-by-Lightning-Network-Dev
  • The new node monitoring tool has been dubbed ‘Indom’ by its creators.
  • It is being said that through the use of Indom, some of today’s existing peer-to-peer network problems can be avoided completely.

As per an all new blog post published by software developer Valentine Wallace a couple of days back, second-layer payment protocol — The Lightning Network — now has a new node monitoring tool available for use. The technology in question is called Indmon and it has been described as a “drop-in, dockerized monitoring solution” by its creators.

The primary goal of this tool, as per its developers, is to help avoid some niche’ network issues before they even arise. In regards to this development, it is worth highlighting that all through 2019, the market saw the emergence of various peer-to-peer network related problems that could have easily been avoided through the use of node monitors.

On the subject Wallace added:

“A routing node operator may want to be notified if multiple channels are closed in rapid succession or if their peer connections show signs of instability.”

In addition to avoiding potential network problems, Valentine’s above stated post also talks about other use cases for this technology.

For example, the monitoring tool can also be used for a host of financial reasons — such as trend observations, cost analysis etc.

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Author: Shiraz J